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Cogeco Unveils DOCSIS 3 Upgrades in Niagara Falls, St. Catherines, Ont.

Phillip Dampier October 18, 2011 Broadband Speed, Canada, Cogeco, Data Caps 1 Comment

Cogeco customers in the Niagara Region watching their neighbors further north in Hamilton and Toronto enjoy faster broadband service can finally obtain faster Internet access from incumbent cable provider Cogeco, who this week unveiled three new faster speed packages in Niagara Falls and St. Catherines.

Cogeco’s Turbo 20, Ultimate 30 and Ultimate 50 High Speed Internet packages are all powered by DOCSIS 3 upgrades, which allow cable operators to bond multiple “channels” together to deliver faster Internet speeds.

Unfortunately, while download speeds of up to 50Mbps can be enticing, Cogeco’s upload speeds, even on their DOCSIS 3 network, are downright stingy.  Thanks to Cogeco’s relentless Internet Overcharging schemes, so are the usage caps.  The Turbo 20 package tops out at 20/1.5Mbps and offers only 80GB of included traffic.  After that, pony up $1.50/GB, up to a maximum of $50 in overlimit penalties.

The Ultimate 30 package includes 30/2Mbps with 175GB of data transfer capacity.  The Ultimate 50 pack delivers 50/2Mbps service with a 250GB cap.  But customers entranced with the extra speed should watch their wallets.  Cogeco’s overlimit fee is $1/GB on these packages with no maximum limit on those charges.

At least Cogeco is satisfied with their newest offer.

“We always strive to offer our customers more flexibility, speed and choices. Today, the whole family can use the Internet at the same time for online banking, video gaming, shopping or for downloading videos or films, and all with the same service. Cogeco’s HSI packages Turbo 20, Ultimate 30 and Ultimate 50 meet those needs perfectly,” said Ron Perrotta, vice president, Marketing and Strategic Planning.

The new Turbo 20 package is currently on promotion and offered for $44.95 per month for 12 months for customers who also subscribe to Cogeco’s Television and/or Home phone services, and for $54.95 per month for 12 months for those who only want to subscribe to the High Speed Internet service. Turbo 20’s regular price is $49.95 if bundled with other Cogeco services and $59.95 on a standalone basis.

For customers who subscribe to more than one Cogeco service, Ultimate 30 is offered for $59.95 per month and Ultimate 50, for $99.95 per month. Ultimate 30 and Ultimate 50 are also available on a standalone basis for $69.95 and $109.95 respectively.

America’s Best Broadband Value: The U.S. Postal Service?

Phillip Dampier October 3, 2011 AT&T, Comcast/Xfinity, Competition, Consumer News, Cox, Data Caps, Editorial & Site News, Public Policy & Gov't, Suddenlink (see Altice USA) Comments Off on America’s Best Broadband Value: The U.S. Postal Service?

Allen Wan from Chicago dropped Stop the Cap! a postcard by good old snail mail about today’s broadband cap ‘n tier regime in place at some of America’s largest Internet Service Providers to make an important point: with Internet Overcharging schemes like usage caps and usage-based billing, America’s best broadband value may actually come from the United States Postal Service.

Allen breaks it down for us:

AT&T Comcast U.S. Post Office
Regular Unit/Monthly Price $25 for 768kbps DSL
$45 for 6Mbps DSL
$60 Internet-only service $0.44 First Class Mail
$0.11 Blank CD-R
$0.12 Blank DVD+R
$0.48 Blank DL-DVD+R
$0.10 Label/Envelope
Cap/Capacity 150GB per month 250GB per month 700MB for CD
4.7GB for DVD
8.5GB for DL-DVD
Price per Gigabyte $0.17 for 768kbps DSL
$0.30 for 6Mbps DSL
$0.24 $0.93 for CD
$0.14 for DVD
$0.12 for DL-DVD

Allen’s chart points out that for large file transfers like movies, TV shows, and major software updates, consumers actually get more value on a per-GB basis burning those shows and software to a traditional or dual-layer (DL) DVD, and dropping them in the mailbox.

While prices for service may vary, so do Internet Overcharging schemes.  If a customer reaches their monthly limit one time too many, they will be relying on the post office to move files back and forth because companies like Comcast and Cox will terminate their service.  Other providers, like AT&T and Suddenlink, are content to simply send the customer a bill with overlimit charges on it.

With a marketplace duopoly, ineffective government oversight, and ever-increasing prices, the U.S. Post Office may still be in the running after all, thanks to Back to the Future-pricing from your ISP.

Bell’s Usage Meter is Still Wildly Inaccurate, Customers Charge

Phillip Dampier September 15, 2011 Bell (Canada), Canada, Data Caps, Public Policy & Gov't 5 Comments

Still Not Measuring Usage Correctly

Bell Canada’s Internet usage meter is still giving wildly inaccurate measurements of Internet usage, some customers allege.

Eleanor White, a Bell broadband customer, found Bell measuring some 30-44GB of usage, despite the fact the biggest bandwidth application in use by the account holder is a 16kbps audio stream running regularly throughout the day.

White estimates the monthly usage from that radio stream can’t be more than three gigabytes for the entire month, even leaving the stream running 16 hours a day.

“I hardly ever watch online video, and I estimate my usage from the radio stream and doubling it to account for e-mail reading and web browsing to be no more than 5.6GB a month,” White says. “But Bell measures at least 6-8 times as much, month after month.”

Bell’s usage meter has been implicated repeatedly for being inaccurate, occasionally by the company itself.  But the tool remains online and Bell continues to maintain its Internet Overcharging schemes, even for customers on its hybrid fiber-copper Fibe network.

Customers accuse Bell of overmeasuring usage on Fibe broadband as well.

“From the moment I got switched to Fibe, my traffic [measurement] went through the roof, at least according to the traffic monitor,” says Jurjen.  “[But that measurement doesn’t reflect] what we were actually using the Internet for.”

“Don’t try to get this solved; Bell won’t do anything (trust me, I tried for about five months),” Jurjen says. “The only solution: switch ISPs.”

Jurjen thinks the day holding Bell accountable for their broken usage meter is long overdue.

“For every service that you get billed by a unit, you must be certified by Measurements Canada. Just check your local gas station, it’ll have stickers all over. Same for your electricity provider,” Jurjen says.

“However, Bell is not certified by Measurements Canada. If you have a lot of spare time and money, do us a favor and start a trial against Bell.”

Shamrock, Okla.: Bankrupt City, Abandoned Police Cars, Padlocked Doors, But Internet Service Prevails

Shamrock Museum

The city of Shamrock, Okla. may not be a city for much longer, facing unincorporation and liquidation of its remaining assets, which include the abandoned police cars that used to earn the city enough ticket revenue to keep the doors open.  But fast (and free at the local community center) Internet prevails (with competition, too) in a city with fewer than 100 remaining citizens.  It’s all thanks to a federal broadband grant and an existing Wireless ISP.

Shamrock’s unlucky predicament comes at the expense of the boom-and-bust oil business that launched dozens of small towns in rural Oklahoma, only to leave them largely abandoned when the oil dried up, or the cost to access it becomes too prohibitive.  Once a community numbering 10,000, Shamrock, located nearly halfway between Oklahoma City and Tulsa, had recently been surviving on revenue earned from writing traffic tickets in infamous speed traps set up along Highway 16.  Shamrock, along with Big Cabin, Caney, Moffett, and Stringtown, became so notorious for their dependence on traffic ticket revenue to keep the towns afloat, at one point the state government publicly designated them “speed trap towns” and banned them from writing tickets on state and federal highways. When Creek County officials learned the city was using non-commissioned officers to write tickets, they shut down the whole operation.

Soon after, residents found the city hall padlocked, with coffee cups still on the desks and police evidence lockers still stuffed with property from active criminal cases (although seized marijuana and beer has since disappeared.)

In fact, the only service now in operation at the city hall, now converted into a “community center,” is Internet access on 10 computers made possible by @Link Services LLC, an Oklahoma City-based Wireless Internet Service Provider (WISP) that provides service in rural areas, with the help of a broadband grant from the U.S. Dept. of Agriculture.

The broadband grant, amounting to $536,000, with matching funds of $134,000 kicked in by @Link, covers the costs of running the community center for two years and extending wireless access with the construction of a new wireless radio tower in Stillwater, which allows the company to reach Shamrock residents.

In addition to providing free access at the former city hall, @Link also sells Internet access to area residents (the only remaining business in town is a diner):

@Home Standard  512 Kbps download  512 Kbps upload $34.95
@Home Advanced  1.5 Mbps  up to 1.5 Mbps $39.95
@Home Premium  3.0 Mbps  up to 1.5 Mbps $46.95
@Home Premium Plus  5.0 Mbps  up to 3.0 Mbps $59.95
@Home Max  6.0 Mbps  up to 6.0 Mbps $74.95

“This is going to be the last place anyone would provide Internet without government funding because there is no chance of turning a profit,” Kerry Conn, chief financial officer of @Link Services told The Oklahoman. “But if you don’t have Internet services, your town is going to die.”

@Link CEO Samual Curtis says their wireless Internet access sells itself.

“Broadband is a very easy sell where there is no broadband,” Curtis told the newspaper.

The only problem with that is Shamrock currently does receive service from another Wireless ISP — OnALot, a service of HDR Internet Services, Inc.  OnALot operates from 70 systems in more than 25 cities and communities across rural Oklahoma.  @Link’s arrival in town, with the assistance of a federal broadband grant, came as a surprise to some Shamrock residents who already had Internet service from OnALot.  Now those customers have two choices — both wireless — for Internet service.  OnALot, the incumbent, is often cheaper, too:

PLAN 12 Month
Contract
Credit or
Debit Card
Monthly Fee For Service
A No Contract No $42.00
B No Contract Yes $37.00
D Yes Yes $33.00

OnALot does not sell traditional speed tiers.  Instead customers share access points rated at speeds of 11 and 54Mbps.  Customers do not actually see anything close to those speeds, because they are theoretical maximums and each access point is shared by several users.  But since many residential customers do not have a firm understanding of what different speed levels represent, it has proven workable for HDR Internet to sell services based on price, not speed.

OnALot does sell dedicated, private wireless circuits to customers who don’t want to share, but they are comparatively expensive:

Speed Equipment Monthly Fee
3.0 / 512 $400.00-$600.00 $200.00
6.0 / 768 $400.00-$600.00 $350.00

OnALot.com operates both standard Line-of-Sight and Near-Line-of-Sight systems on the 80' tall water tower on the west side of Shamrock.

One Oklahoman reader, Bobbi, wondered why @Link received federal grant money to provide Internet service in a community that already had access.

“Why this company didn’t do their homework before they used government money to provide a service to a town that had that service,” Bobbi asked. “Wouldn’t that be a misuse of the grant money?”

Broadband grant funding has come under criticism at times for funding projects that incumbent providers accuse of duplicating services.  A study funded by the National Cable & Telecommunications Association, the cable industry’s top lobbyist, found several instances of grants that would deliver broadband service to areas already served by other providers.

“While it may be too early for a comprehensive assessment of the [government]’s broadband programs, it is not too early to conclude that, at least in some cases, millions of dollars in grants and loans have been made in areas where a significant majority of households already have broadband coverage, and the costs per incremental home passed are therefore far higher than existing evidence suggests should be necessary,” the study says.

Thus far, much of the funding for rural Oklahoma seems to be directed towards wireless Internet access projects, which typically serve sparsely populated areas cable and phone companies have traditionally ignored.

The NCTA’s criticism, in particular, was directed against its would-be competitors.  The lobbying group suggests the price of competition was too high.

Based on the cost of the direct grants and subsidizing the loans, the NCTA study estimated that the cost per incremental home passed would be $30,104 if existing coverage by mobile broadband providers was ignored, and $349,234 if mobile broadband coverage was taken into account.

Wireless ISP operators have told Stop the Cap! many of their projects are self-financed and do not receive government assistance.  Some WISP operators have accused the government of making broadband grants to wireless operators a cumbersome, if not impossible prospect because incumbent telephone companies are often most likely to meet the government’s grant criteria.

For Shamrock residents, one piece of good news: @Link Services and OnALot both have no Internet Overcharging schemes like usage caps.  However, OnALot prohibits the use of peer-to-peer software (torrents) and @Link Services maintains the right to curtail speeds for those who create problems for other users on their shared wireless network.

OnALot’s usage policies are among the most frank (and common sense) we’ve seen, because they are up front with customers about the impact certain traffic can have on their wireless network:

  1. You are paying us to download from the Internet. We do not limit you on that. You can download anything you want 24/7. Games, email, web pages, radio stations, and so on – we don’t care, downloading is what you are paying us for. That said, we would prefer that you do not leave an active game un-attended, or run a radio station continuously, as these eat up bandwidth that others could be using. When you’re done with your game, please turn it off.
  2. We do have restrictions when it comes to uploading TO the Internet. P2P or Peer-to-Peer programs are NOT allowed. These limitations apply primarily to file sharing programs. We do NOT allow music or video sharing programs, bit torrent programs or other programs where outside users can extract files from your computer with or without your express consent. And seriously, do you actually WANT others to have full access to your computer? That’s what you’re giving to file sharing programs! Please call us if you are unsure if the program you are using is a file sharing program.
  3. Yes, you can upload to your favorite website, send big emails, and transfer any size files that are under your control. That’s OK with us – these are intermittent in nature and under your full control. It’s the unattended uploading that sharing programs do that we do not allow.
  4. If your computer has a virus and is “spewing” out onto the Internet, we expect you to have it cleaned. Causing others to become infected is wrong, and we may take steps to disable your Internet connection. We will call you first, explain what is going on and ask that you have your machine cleaned. If you decide not to do this, we will then cut you off until you do.

More Tricks and Traps from Usage-Based Billing: Pay A Penalty for Not Using Enough Service

Phillip Dampier August 25, 2011 Consumer News, Data Caps, Video 3 Comments

The telecommunications industry better not take a tip from some Texas power companies that have found new ways to increase profits: charging customers a penalty when they do not use enough electricity during the month.  Imagine if broadband providers with Internet Overcharging schemes followed suit.

After Texas deregulated electric utilities, an increasing number of companies are using their freedom to find new, creative ways to tack on additional fees and surcharges that might normally be considered the cost of doing business.

CenterPoint Energy, a Fortune 500 corporation providing service in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma, and Texas would like to introduce you to its Minimum Usage Penalty — a $9.95 fee applied to Texans caught using too little electricity from the company.

While most utility companies set a basic customer charge applicable to everyone, which covers the cost of your electric meter, power lines and their upkeep, billing, and other administrative expenses, many Texas power companies are billing consumers a monthly fee for conserving too much electricity.

The concept flies in the face of common sense, especially as the state contends with dozens of 100+ degree summer days and pleas from utilities for customers to cut back on energy use.  But if some do, especially low-consumption customers in apartments or those who maintain part-time residences, they’ll pay a penalty for doing so.

The Texas Electricity Ratings Blog found more than a dozen power companies with similar policies, with penalties as high as $12.96 for using less than 1,000 kWh per month:

Ambit Energy: $9.99 for less than 1000 kWh per month
Amigo Energy: Depending on the plan it is $9.95 of $6.95 for less than 1000 kWh per month
Bounce Energy: $4.95 for less than 1000 kWh per month for almost all of their plans, except intro plans are $6.96 per month for less than 1000 kWh.
Champion Energy: $4.95 for less than 500 kWh per month
Cirro Energy: $5.25 for less than 1000 kWh per month
Direct Energy: I couldn’t find a Monthly Fee in their Terms of Service or EFLs
Dynowatt: $6.95 for less than 1000 kWh per month
First Choice Power: $5 for less than 650 kWh per month, plus a $4.95 base charge
GEXA Energy: Seems to simply use a sliding rate per plan for different usage w/o a minimum charge
Green Mountain Energy: Didn’t seem to see any minimum usage charge in the EFL or Terms of Service
Mega Energy: $12.96 for less than 1000 kWh per month
MX Energy: Seems to simply use a sliding rate per plan for different usage w/o minimum charge
Reliant Energy: $9.95 for less than 800 kWh per month
Southwest Power & Light: I didn’t see minimum usage but they had a $7.95 monthly meter fee.
Spark Energy: $8.99 for less than 1000 kWh per month
StarTex Power: $4.99 for less than 500 kWh per month
Tara Energy: $6.95 for less than 500 kWh per month
Texas Power: $10.00 for less than 1000 kWh per month
TXU Energy: TXU uses a base $4.95 charge and sliding rates for less or greater than 1000 kWh, per plan.

[flv width=”600″ height=”358″]http://www.phillipdampier.com/video/KTRK Houston Higher Bills for Not Using Enough 7-11.flv[/flv]

KTRK in Houston provides surprising information about Texas utility usage-based-billing rates — power companies will charge you a penalty for not consuming enough electricity.  Better hope broadband providers angling for UBB don’t catch on.  (3 minutes)

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